HHS: Changes to ACA on the way

WASHINGTON — The Trump administration took steps Wednesday intended to calm jittery insurance companies and make tax compliance with former President Barack Obama’s health law less burdensome for some.

But the changes could lead to higher annual deductibles, according to the administration’s own proposal. That seems to undercut President Donald Trump’s assurance in a recent interview that his plan would mean “lower numbers, much lower deductibles.”

The moves announced separately by the Health and Human Services Department and the IRS don’t amount to sweeping changes to the Affordable Care Act. That would fall to Congress, where Republicans are struggling to reach consensus over how to repeal and replace the health law. House Speaker Paul Ryan, R-Wis., is expected to present elements of a plan to GOP lawmakers Thursday morning.

But the administration actions do signal a change in direction. Recently confirmed HHS Secretary Tom Price called them “initial steps in advance of a broader effort to reverse the harmful effects of Obamacare.” Premiums are up sharply this year, while many communities were left with just one insurer.

For consumers, the proposed HHS rules mean tighter scrutiny of anyone trying to sign up for coverage outside of open enrollment by claiming a “special enrollment period” due to a change in life circumstances, such as the birth of a child, marriage, or the loss of job-based insurance. Also, sign-up season will be 45 days, shortened from three months currently.

Insurers would also gain more flexibility to design low-premium plans tailored to younger people. But that could lead to higher deductibles, according to HHS.